The founder of a defunct Indiana online charter school and his wife were in court because the state alleges they improperly mortgaged and sold a $2.5 million Florida condo.

The defendants helped run two online schools that closed abruptly in 2019 after allegations that they inflated enrollment.

The former heads of Indiana Virtual School and Indiana Virtual Pathways Academy are accused of a conspiracy to defraud the state by reporting false student enrollment numbers.

A Hamilton County Superior Court Judge denied multiple request to dismiss a lawsuit that seeks more than $154 million from people tied to two defunct Indiana online charter schools.

The Hamilton County Superior Court heard arguments Wednesday on multiple motions to dismiss Attorney General Todd Rokita’s claims against people and companies with ties to the online public schools.

Indiana is seeking more $154 million from individuals and businesses with ties to Indiana Virtual School and Indiana Virtual Pathways Academy, online public schools that closed two years ago amid allegations that they bilked the state of millions by inflating their enrollment.

Indiana wants Daleville Community Schools to repay $2.2 million in state funds connected to the inflated student enrollment at two shuttered virtual schools the district authorized.

An investigation by the Indiana State Board of Accounts says a quest to maximize profit at two virtual charter schools led its leaders to inappropriately collect more than $68 million in tax dollars by inflating student enrollment numbers for years.

Tuesday night the board of directors who run two scandal-plagued virtual charter schools planned to hold a public meeting to discuss its closure. But what took place, leaves more questions than answers.

Teachers at Indiana Virtual School and Indiana Virtual Pathways Academy won't be paid for the work they did between July 15 and Aug. 15.